| San Juan Basin Royalty Trust (NYSE: SJT) is an unmanaged trust that receives royalties on the production and sale of oil and natural gas from the San Juan Basin in northern New Mexico. Some of the financial websites show that the trust yields as much as 25%. San Juan Basin Royalty Trust pays a monthly dividend. If you annualize May's $0.0527 per share dividend, you get a yield of 7.6%. The reason for the sky-high yield noted by the websites is March's $0.4097 per share dividend and February's $0.2498 per share payout. You don't have to worry about the company paying out more in dividends than it takes in. Royalty trusts basically just pass the royalties they collect, minus any small administrative costs, on to investors. There's no management team trying to gain confidence from Wall Street or entice shareholders to stick around by paying a too-high dividend. |
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